Gold prices soar in India as border tensions with Pakistan and global market instability fuel a rush for safe-haven assets. Will rates hit a new record high soon?
Gold Price Hits ₹96,535 Amid India-Pakistan Tensions—Is ₹99K Next?
Rising Geopolitical Heat and Rupee Fall Ignite Gold Price Surge.Gold has gold dust to shine as prices shoot up after two weeks of fall, due to steeper India-Pakistan tensions and a devaluing rupee. Gold closed at ₹96,535 per 10 grams (an increase of ₹3,835 w/w) on the MCX on Friday Friday With a 4% lift, investors are beginning to worry about global geopolitical risk and global market volatility.
Rupee Slide Makes Gold Even More Expensive
The Indian rupee has lost close to 1% against the US dollar, which is one of the major reasons for this sharp price rally. Lower currency makes gold imports more expensive, thus prices automatically increase for the Indian consumer. To many investors, gold turned out to be the best hedge in a volatile world.
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US Fed Pause and Global Trade Jitters Drive Global Demand
Taking it up a notch, US Federal Reserve decided to keep interest rates unchanged at 4.5% over the horizon. Moreover, fears of decelerating global growth and the escalating protectionist threats from the U.S.-most notably aimed at foreign films and pharma—have simply been heating up safe haven purchases into global overdrive. A further boost in global gold prices came with the 25-basis point rate cut by the Bank of England.
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India-Pakistan Tensions Add Spark to Domestic Demand
Rising investor anxiety at the India-Pakistan border has sharply boosted domestic gold demand. Safe haven buying is a well-documented trend during upcoming geopolitical tensions, and that spike in demand is no different. US-China and UK trade negotiations have provided, at best, temporary respite from the storm that is still brewing of course.
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Gold Price Forecast: Record High Ahead?
Gold, analysts expect to move in the range ₹94,500 to ₹97,500 in short term. Further up if the momentum stays, next level of ₹97,500 will get touched; prices could surge to as high as ₹98,780 and even chase all time high at ₹99,358. Globally, support at $3,280 per ounce might lift the price to $3,420.
With global risks mounting, gold is once again proving why it’s the go-to asset in times of chaos.